Poverty Reduction Strategy Papers (PRSPs) are road maps for domestic policy and development assistance. In 1999 The World Bank and International Monetary Fund (IMF) board’s executive directors approved this approach to reducing poverty in low-income countries.
The World Bank and International Monetary Fund (IMF) Board’s executive directors called for an assessment of the early experience of PRSPs, the ‘Review’. The Review focused on the countries’ experiences in developing, implementing and monitoring their PRSPs. The PRSP process is designed to be participatory and open and to include all major stakeholders, including civil society organisations, private sector representatives, trade unions, women’s groups, representatives of the poor and donors. The preparation of PRSPs is helping countries to obtain better poverty data and diagnostics and to help clarify national targets and indicators. PRSPs are also meant to help countries set their macroeconomic policies and sectoral and governance programmes. They were also, in part, designed to help overcome problems in donor coordination, weak country ownership and the fragmentation of government programmes and institutions in aid delivery.
Low-income countries, development partners and civil society have affirmed the value of the PRSP approach. The results vary across countries and regions depending on their starting point and how advanced they were in the process. Main findings are that:
Key achievements are: a growing sense of country ownership; more open dialogue with civil society groups; the greater prominence of poverty reduction in policy debates and the support for PRSP from development actors.
There is no blueprint for participation in PRSPs – it depends on local circumstances.
In conflict-affected countries, internal instability and fractured social and political environments may make it necessary to delay completion of Interim PRSPs.
Poverty and social impact analysis has typically not been undertaken, and long-term targets are often overly ambitious.
Nearly all donors have agreed, in principle, to align their programmes with PRSPs.
The review did not make policy recommendations (as this was seen as contrary to the principle of country ownership), but a number of good practices were recognised for both countries and donors:
Building capacities of governments and civil society so that they can engage in the PRSP process is important. Development partner’s own staff and resources should support the PRSP design too.
Good participatory practices will include the government, have sufficient feedback mechanisms, have information available to civil society and provide timely feedback.
Conflict affected societies should describe how their specific problems are being addressed in PRSPs and focus on public actions and institutions that most urgently need to be rebuilt.
Poverty targets should be realistic and an analysis of major poverty programmes and actions should be undertaken. Annual implementation progress reports can play a key role in ensuring implementation.
An assessment of public expenditure management systems is necessary. PRSPs should also be integrated into decision- making processes.
The coordination and alignment of the donor community is essential.
